SEKO logistics join Sustainable Air Freight Alliance (SAFA)

SEKO Logistics has joined the Sustainable Air Freight Alliance (SAFA) to accelerate its global decarbonization program and help clients achieve their own sustainability goals.

The Sustainable Air Freight Alliance (SAFA) is a buyer-supplier collaboration between shippers, freight forwarders and airlines to track and reduce carbon dioxide emissions from air freight and promote responsible freight transport. Its reporting airlines are AirBridgeCargo Airlines, American Airlines, Cargolux, Cathay Pacific, Delta Air Lines, LOT Polish Airlines, Lufthansa Cargo, Polar Air Cargo, SAS and United Airlines. SAFA’s membership also includes global shippers; h & m hennes & mauritz ab, Hewlett Packard Enterprises, Louis Vuitton, LVMH Moët Hennessy, Mowi ASA, NIKE, Inc., and PUMA SE.

“We have a responsibility to join other global business leaders in this initiative because our industry must do more to protect our planet for future generations,” said James Gagne, President & CEO of SEKO Logistics. “This is not a cliché, it’s a reality. SAFA is a tangible opportunity for us to contribute to the positive decarbonization work being undertaken by the aviation industry, airlines and companies like SEKO to make a positive difference. Companies which lack a sustainability strategy will see their growth threatened because clients will take their business elsewhere if their partners do not take this seriously. This is a collaborative effort in which we can do more and act faster by working together. Joining SAFA will enable us to help our clients achieve their own sustainability goals too, which is how it should be.”

The aviation industry has been proactively stepping up sustainability programs to meet new regulations, helped by advancements in aircraft technologies and greater fuel efficiency, as well as progress in relation to the use of biofuels. The International Civil Aviation Organization (ICAO) has established its Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) to focus on the purchase of credits and lower carbon fuels, while the International Air Transport Association (IATA) is targeting a reduction in net aviation CO₂ emissions of 50% by 2050.

SAFA provides a collaborative platform for sharing and learning sustainability information, best practices, and innovation to help achieve company goals. Airlines report on qualitative data, including carbon efficiency for fleet (average), per trade lane, per flight classification, and per aircraft model. This encapsulates policies and compliance, sustainability governance, greenhouse gas (GHG) footprint disclosure and targets, and alignment with ICAO goals for sustainable fuels offsets.

This carrier-specific data enables shippers and forwarders to more accurately measure carbon footprint, set their own GHG reduction targets and track progress against them.

SEKO Logistics is already a partner in the US Environmental Protection Agency‘s (EPA) SmartWay program to confirm the company’s annual fuel usage and freight emissions data and comply with the EPA’s targets to enhance the sustainability of global supply chains. SEKO has also introduced home compostable packaging into its eCommerce fulfilment operations to replace single-use plastics, is adopting solar energy solutions at major facilities in Europe and the US, and piloting a ‘Green Lane’ carbon calculator, which it ultimately intends to deploy globally for clients.

Shawn Richard, SEKO’s Vice President – Global Air Freight, commented: “We are working on sustainability initiatives in our own operations and facilities globally, but the simple fact is that 75-80% of our carbon footprint is related to our indirect procurement of transportation. As members of SAFA, we will engage more proactively with our partners and be part of a community to advocate for decarbonization. We will access better data from airlines to help manage our carbon calculations.

“Air transport represents around 2% of global carbon dioxide emissions and although improvements in aircraft fuel efficiency will make an important contribution to reducing this, the industry needs transformative change to meet the climate needs of our planet. All around us, we see some outstanding initiatives, such as United Airlines’ recent announcement that it intends to be carbon neutral by 2050. This reinforces the very clear and simple message to our industry; sustainability is no longer a ‘nice to have’ in logistics but a determining factor in who customers and consumers will choose to do business with.”

The Sustainable Air Freight Alliance was established by BSR, a team of sustainable business experts that works with a global network of more than 250 member companies.

“We’re proud to welcome SEKO Logistics as a new member of BSR, and the Sustainable Air Freight Alliance (SAFA), a collaboration which seeks to track and reduce carbon dioxide emissions from air freight and promote responsible freight transport,” said Sarah Mouriño, BSR Director, Transport and Green Freight. “We look forward to working with SEKO on their journey to become a more sustainable company, contributing to our movement to create a more just, sustainable world.”

WLP expands in South America

The World Logistics Passport (WLP), a unique loyalty program established to increase trading opportunities between emerging markets, is expanding in South America with Uruguay’s Ministry of Foreign Relations signing a memorandum of understanding (MoU) recently.

More than 10 countries are now part of the major policy initiative trading nations include India, South Africa and Indonesia, amongst others.

In addition, major multinational corporations including UPS, Pfizer, Sony, Johnson & Johnson and LG are also engaged with the WLP.

As one of the first South American countries to engage in the program, today’s announcement follows the registration of Montevideo Free Airport and solidifies the country’s standing in the WLP.

Uruguay’s location offers the WLP a connection to targeted gateway countries including Paraguay, Argentina, and Chile. The region will also benefit significantly from the infrastructure and logistics expertise of Dubai-based WLP partners, such as DP World and Emirates Skycargo, who will play an important role in advancing Uruguay’s trade with the rest of the world.

The MoU was signed by Francisco Bustillo, Minister of Foreign Relations of Uruguay and Sultan Ahmed bin Sulayem, Chairman of Dubai’s Ports, Customs and Free Zone Corporation (PCFC), signaling a clear commitment from the government of Uruguay to grow the country’s trade volumes.

‘We understand that the signing of this MoU contributes to the formation of relevant business alliances for the international economic insertion of Uruguay and, above all, capitalizes on the credentials and prestige that our country has garnered internationally. It is also positive in as much as it facilitates the transit of goods, favoring a possible reduction in freight costs, which if it happens, could favor our export sector and the entire economy,” Minister Bustillo said.

In addition, he said this MoU will provide a constant exchange of knowledge and commercial experiences, which will be extremely beneficial for public and private agents.

‘Since its launch, the World Logistics Passport has been welcomed by governments and business around the world for the numerous benefits it delivers to local economies, traders and homegrown business. Our rapid and continued inclusion of new members and partners underscores the importance of increasing trading opportunities between emerging markets, Mike Bhaskaran, CEO of the World Logistics Passport, said.

‘We now stand together in a club of 11 trading nations demonstrating how it is possible to build a resilient trade ecosystem and reimagine how goods and services move around the world.

The WLP creates opportunities for businesses around the world to improve existing trading routes, and develop new ones, through the world’s first logistics loyalty program for freight forwarders and traders. It overcomes non-tariff trade barriers by incentivizing increased trade through more efficient and cheaper trade processes.

Airlink and SirajPower sign solar leasing agreement

Dubai based Solar provider, SirajPower, has signed a solar leasing agreement signed with Airlink International UAE, one of the leading providers of cargo and logistics in the UAE.

SirajPower has been appointed as a long-term partner to finance, operate and maintain a 1.3 MWp solar rooftop plant for Airlink’s Logistics Centre in JAFZA.

The project covers over 2,000 solar panels that will annually produce 2.1 GWh of clean energy and offset nearly 1,500 metric tons of CO2 emissions, corresponding to approximately 6,000,000 kilometers driven by an average vehicle passenger (or equivalent to more than 24,000 tree seedlings grown for 10 years).

With over 45 years of history, Airlink provides supply chain solutions, combining international air and ocean freight with comprehensive value-added logistics and supply chain services. The deal with SirajPower represents Airlink’s first major green undertaking.

“SirajPower and Airlink International UAE are both committed to offering a holistic experience to their customers while at the same time making energy consumption more efficient and mitigating climate change impacts. By doing so, we are also contributing to the UAE’s long-term vision for a greener economy,” said Mohammed Abdulghaffar Hussain, Chairman of SirajPower

MaithaJumaSaif Bin Bakhit, Chairperson of Airlink, said: “This project marks our key contribution to the UAE and the world for a greener environment as we celebrate our 45th year of operation in the market. We entrusted SirajPower to turn Airlink’s initiative of a sustainable energy-saving and greener footprint feasible.”

Earlier this year, SirajPower reported significant growth as it doubled its solar assets in 2020 to achieve a 100 MWp distributed solar portfolio, making it the most extensive in the region. The company currently operates over 180 solar plants across the UAE.

QAIA awarded ‘Best Airport by Size and Region’ by ACI World

For the third consecutive year and the fourth time in its history, Queen Alia International Airport (QAIA) has been awarded the title of ‘Best Airport by Size and Region: Middle East’ for airports serving five to 15 million passengers based on the 2020 Airport Service Quality (ASQ) Survey.

This achievement, presented by Airports Council International (ACI) World, marks the highest possible accolade for airport operators worldwide.

QAIA was recently recognized by ‘The Voice of the Customer’ – an ACI World initiative acknowledging airports that continued to priorities listening and engaging with their passengers during the COVID-19 crisis. QAIA shares this new form of recognition with only two other airports in the Middle East and 139 worldwide. To qualify for the ‘The Voice of the Customer’ – which is separate from the world-renowned ASQ Awards – Airport International Group succeeded in collecting the program’s required data to help better understand passenger expectations during the pandemic.

“More than ever before, 2020 was a year that demanded our deep understanding of the rapidly-evolving concerns, needs and expectations of our passengers. It was a trying period that further emphasized the importance of applying a customer-centric approach in all our operations,” said Airport International Group CEO, Nicolas Claude. “Despite the unprecedented challenges brought on by the global pandemic, I am immensely grateful for our team, stakeholders and partners for keeping pace with these changing trends and ensuring safer and improved travel experiences were delivered. We are honored to have received the ASQ Award and ‘The Voice of the Customer’ recognition, which represent our dedication to placing passengers at the center of everything we do.”

Air Cargo demand returns to pre-covid levels for the 1st time since pandemic, IATA reports

The International Air Transport Association (IATA) has released January 2021 data for global air cargo markets showing that air cargo demand returned to pre-COVID levels (January 2019) for the first time since the onset of the crisis.

January demand also showed strong month-to-month growth over December 2020 levels.

Because comparisons between 2021 and 2020 monthly results are distorted by the extraordinary impact of COVID-19, unless otherwise noted all comparisons to follow are to January 2019 which followed a normal demand pattern.

Global demand, measured in cargo ton-kilometers (CTKs*), was up 1.1.% compared to January 2019 and +3% compared to December 2020. All regions saw month-on-month improvement in air cargo demand, and North America and Africa were the strongest performers.The recovery in global capacity, measured in available cargo ton-kilometers (ACTKs), was reversed owing to new capacity cuts on the passenger side. Capacity shrank 19.5% compared to January 2019 and fell 5% compared to December 2020, the first monthly decline since April 2020.

The operating backdrop remains supportive for air cargo volumes:

Conditions in the manufacturing sector remain robust despite new COVID-19 outbreaks that dragged down passenger demand. The global manufacturing Purchasing Managers’ Index (PMI) was at 53.5 in January. Results above 50 indicate manufacturing growth versus the prior month.

The new export orders component of the manufacturing PMI – a leading indicator of air cargo demand– continued to point to further CTK improvement. However, the performance of the metric was less robust compared with Q42020 as COVID-19 resurgence negatively impacted export business in emerging markets. Should this continue or expand to other markers, it could weigh on future air cargo growth.

The level of inventories remains relatively low compared to sales volumes. Historically, this has meant that businesses had to quickly refill their stocks, for which they also used air cargo services.

“Air cargo traffic is back to pre-crisis levels and that is some much-needed good news for the global economy. But while there is a strong demand to ship goods, our ability is capped by the shortage of belly capacity normally provided by passenger aircraft. That should be a sign to governments that they need to share their plans for restart so that the industry has clarity in terms of how soon more capacity can be brought online. In normal times, a third of world trade by value moves by air. This high value commerce is vital to helping restore COVID damaged economies—not to mention the critical role air cargo is playing in distributing lifesaving vaccines that must continue for the foreseeable future,” said Alexandre de Juniac, IATA’s Director General and CEO.

Middle Eastern carriers posted a 6.0% rise in international cargo volumes in January versus January 2019, which was an acceleration over the 2.4% year over year gain recorded in December compared to December 2019. Of the region’s key international routes, Middle East-Asia and Middle East-North America have provided the most significant support. January capacity was down 17.3% compared to the same month in 2019. This was a slight reduction compared to the18.2% decline recorded in December 2020 compared to the year-ago period.

January Regional Performance

African airlines’ cargo demand soared 22.4% compared to the same month in 2019, eclipsing the 6.3% year-over-year increase for December 2020. Robust expansion on the Asia-Africa trade lanes contributed to the strong growth. January international capacity decreased by 9.1% compared to January 2019, reduced compared to the 17.8% capacity decline recorded in December 2020 versus December 2019.

Asia-Pacific airlines saw demand for international air cargo fall 3.2% in January 2021 compared to the same month in 2019. This was an improvement from the 4.0% fall in December 2020. International capacity remained constrained in the region, down 27.0% versus January 2019, which was a deterioration compared to the 26.2% year-over-year decline recorded in December. The region’s airlines reported the highest international load factor at 74.0%.

North American carriers posted an 8.5% increase in international demand in January compared to January 2019, far surpassing the 4.4% gain in December 2020 compared to December 2019. Economic activity in the US continues to recover and its January manufacturing PMIs reached a record-high, pointing to a supportive business environment for air cargo. International capacity fell by 8.5% compared to January 2019. In December 2020, capacity was down 12.8% versus the same month in 2019.

European carriers’ international cargo demand slipped 0.6% in January compared to same month in 2019. This was an improvement from the 5.6% fall in December 2020 over the year-ago period. International capacity decreased 19.5%, a deterioration from the 18.4% year-to-year decline recorded for December.

Latin American carriers reported a decline of 16.1% in international cargo volumes in January compared to the 2019 period, which was an improvement from the 19.0% fall in December 2020 versus a year ago. Drivers of air cargo demand in Latin America remain relatively less supportive than in the other regions. International capacity decreased 37.0% compared January 2019, largely unchanged from the 36.7% year-over- year decline recorded in December 2020.

AUH unveils state of the art PCR testing laboratory within airport

Abu Dhabi Airports, in partnership with Pure Health and Tamouh Healthcare, has launched the region’s first PCR testing laboratory within an airport.

The new state of the art RT-PCR lab offers fast COVID-19 testing within the Abu Dhabi International Airport (AUH) to facilitate the resumption of air travel and assist with quarantine tracking procedures.

Designed to ensure the health, safety, and wellbeing of travelers and staff at Abu Dhabi International Airport, the new Real Time Polymerase Chain Reaction (RT-PCR) testing process is free for arriving passengers and is one of the fastest in the world, with results available in approximately 90 minutes and the capacity to test more than 20,000 travelers and staff per day.

The establishment of the PCR testing laboratory falls in line with the directives and vision of His Excellency Sheikh Mohammed bin Hamad bin Tahnoon Al Nahyan, Chairman of Abu Dhabi Airports, to contain the spread of COVID-19 while continuing to deliver a smooth and seamless travel experience at Abu Dhabi International Airport.

ShareefHashim Al Hashmi, chief executive officer of Abu Dhabi Airports, said: “Through partnering with Pure Health and Tamouh Healthcare, Abu Dhabi International Airport is now able to offer travelers state-of-the-art rapid testing services delivered by a dedicated laboratory facility. The introduction of the RT-PCR COVID-19 testing is a milestone achievement in our ongoing efforts to facilitate the safe resumption of international air travel and support the recovery of the aviation industry.”

“The fact that this is the first airport in the region to contain its own dedicated PCR testing laboratory is testament to our commitment at Abu Dhabi Airports to continuously innovate and look for new ways to deliver a safe, smooth and seamless travel experience for all our passengers. The new fast testing facility at Abu Dhabi International Airport, developed in partnership with many of our stakeholders, will not only enable passengers to confidently travel to Abu Dhabi, but significantly enhance the efficiency of our operations while supporting global efforts to curb the spread of COVID-19,” added Al Hashmi.